Dáil debates

Thursday, 23 November 2017

Other Questions

IDA Ireland Site Visits

11:25 am

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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7. To ask the Minister for Jobs, Enterprise and Innovation the status of regional IDA Ireland site visits up to the third quarter of 2017; the details of all vacant properties per county, in tabular form; and if she will make a statement on the matter. [49595/17]

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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Will the Tánaiste indicate the number of regional site visits by IDA Ireland up to the third quarter of this year? This is an issue we raise in the House at every opportunity given the disparity in the economic recovery across different parts of the country. We are effectively seeing a two-tier economy comprising Dublin and the greater Dublin area versus the regions.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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This is a question the Tánaiste and I are asked in every county we visit. Regional development remains a priority for the Government. I am very much aware that an important part of unlocking the potential of regional Ireland is ensuring that foreign direct investment, FDI, is spread as evenly as possible across the country, as per Government policy. IDA Ireland is committed to increasing FDI in each region, and I welcome the progress made so far in boosting FDI-driven job creation outside of the main urban areas. In 2016, for example, more than half of all IDA Ireland-supported jobs created were based outside of Dublin.

There have been 507 site visits to date this year, up by 18 from the same point last year. While site visits can be a useful indicator of new investment interest, they are not by any means indicative of the potential for FDI in an area.  It is important to note that at least 70% of investment comes from existing IDA Ireland clients. While the agency always highlights the benefits of investing in the regions to prospective investors, determining which particular sites may be attractive to a client depends very much on the particular requirements of the firm concerned. Factors overseas investors take into account include the suitability of local infrastructure, the proximity of transport hubs and the availability of skilled talent. Multinational companies frequently seek to base themselves as close as possible to businesses operating in the same industry. IDA Ireland continues to work with all stakeholders and potential clients, as well as working with existing clients in all regional locations, to generate additional jobs. However, the final decision on where to locate an investment is always decided by the client and not by IDA Ireland.

There are 17 buildings owned by IDA Ireland that are currently available. In addition, the agency leases units from private investors, of which 24 are currently available.

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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The Minister of State's time is up.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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There are several more points I would like to make.

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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The Minister of State will have another opportunity to speak.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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It is, of course, important to attract jobs into the country but it is equally important to ensure those jobs are evenly spread throughout the State. The data show that is not happening. Of the 323 site visits that took place in the first six months of 2017, 48%, or almost half, were in Dublin and the greater Dublin area. Counties Laois and Meath had no site visits, while counties Cavan, Donegal, Monaghan, Offaly and Roscommon had one visit each in the first half of the year. We should not seek to diminish or dilute the significance of site visits and at the same time, IDA Ireland has almost 100 vacant properties across the country. I take every opportunity I have on Question Time to raise this issue. The Government must use whatever means are necessary to force IDA Ireland to encourage site visits in parts of the country where they are not happening.

Last week, Deputy Quinlivan and I were part of an Oireachtas committee delegation that visited the south east to meet members of the business community. If the Tánaiste and Minister of State had been among our number, they would have been run out of town because people there are very annoyed by what they perceive as the lack of attention from both Government and the State agencies, Enterprise Ireland and IDA Ireland. It was hot and heavy going during the two sessions, with the business representatives rightly making their feelings known in a vociferous manner. The Government has a responsibility to achieve a greater spread of site visits into the regions outside the greater Dublin area.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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I understand the south east is one of the areas that has seen significant investment recently. It is important to note that foreign direct investment normally locates in clusters. As we know, industry tends to follow industry.

In regard to IDA Ireland activities, there were 27 site visits in Limerick, which is the Deputy's area. In my own area of Clare, we had 20 visits. These numbers represent a huge increase on what we were seeing in recent years. In addition, the mid-west results for 2017 show that 57% of all job approvals thus far are based outside of Dublin, an increase of 37% from the same time last year. This illustrates our focus on investment in every part of the State.

I take on board the points raised by the Deputy and assure him that the capital development plan is focusing very much on those issues. As I said, clusters are very important for FDI investment but also the proximity of third level institutions and the innovation centres that may be attached to them. Another consideration is the quality of the road network, and we have seen substantial enhancements in that regard in recent times. The inclusion of the Limerick-Cork motorway in the forthcoming plan will be particularly welcomed by the Deputy. There are some areas in the north east, as well as into the Leas-Cheann Comhairle's part of the country, where there are deficiencies in the road network that remain to be addressed and this is reflected in the number of site visits. The ultimate concern is to attract jobs into the country and ensure there is balanced regional development.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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There is a difficulty in that the published draft of the national planning framework will inhibit centres like Limerick, Galway and Cork in their capacity to plan for expansion into the future. That is what people in Limerick are saying to me, as I am sure they are likewise telling the Minister of State. Will he comment on that?

On IDA Ireland site visits, while the Minister of State cited the numbers for the mid-west, Limerick and Clare, which are welcome, what about counties Cavan, Donegal, Monaghan, Offaly and Roscommon? He did not refer to them in his reply.

Another barometer of the economic recovery is gross domestic product, GDP. Last year, 45%, or almost half, of our GDP was generated in the Dublin area. In the United Kingdom, by comparison, London city and the greater London area contributes 20% of national GDP. That is comparing like with like in reference to our neighbouring country and clearly shows we have a major problem when it comes to balanced regional development. IDA Ireland must do more to funnel jobs into those regions that have not experienced the upside of recovery.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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As I pointed out to Deputy Thomas Byrne, four out of five of the jobs created by Enterprise Ireland and IDA Ireland last year were outside Dublin. Balanced regional development is a priority for the Government. The Action Plan for Jobs undertakes to ensure all regions experience growth in jobs, and the statistics show that is happening. Our plan up to 2020 is to ensure that of the 200,000 jobs we intend to create, 135,000 will be outside the capital.

Regarding the national planning framework, it is important to note that we do not yet have a final document. No matter where the Tánaiste and I visit, in every instance the representatives we meet will say their region is not included in the framework. That has happened in Limerick, the mid-west and in locations further south or north. The reality is that submissions have been made and the local authorities have been very vocal in their views, as have the chambers of commerce. I am sure that when the final document is agreed, and we have the three regional documents as well, it will be clear that all areas stand to benefit. It is important that we plan for the future and do not return to the days when there was no planning. Only by having proper planning processes in place can we ensure that all areas benefit.